Judge finds that one flood insurance company has been deliberately underestimating homeowners’ claims

Four Democratic senators from New Jersey and New York have called on the Federal Emergency Management Agency (FEMA) to investigate allegations that some flood insurance companies are deliberately shortchanging payouts to Sandy victims. The accusation comes after a judge found that a insurance company had hired an engineering firm to underestimate damage from the storm.

Sen. Robert Menendez and Sen. Cory Booker, both from New Jersey, said the practice is “pervasive,” while Sen. Kirsten Gillibrand and Sen. Charles Schumer, both from New York, said that homeowners' claims are being potentially “doctored and manipulated.”